Question

Exercise 8-12 Carol Garcia Company was formed on December 1, 2019. The following information is available from Garcia's inventory records for Product BAP Units Unit Cost January 1, 2020 (beginning inventory) 1,320 7 Purchases: January 5, 2020 January 25, 2020 February 16, 2020 2,640 8 2,860 9 1,760 10 March 26, 2020 1,320 11 A physical inventory on March 31, 2020, shows 3,520 units on hand. Prepare schedule to compute the ending inventory at March 31, 2020, under FIFO inventory method CAROL GARCIA COMPANY COMPUTATION OF INVENTORY FOR PRODUCT BAP UNDER FIFO INVENTORY METHOD March 31, 2020 Unit Cost Units Total Cost

Answer 1

a) Calculate ending inventory under FIFO

	Unit	Unit cost	Total Cost
March 26, 2020	1320	11	14520
Feb 16, 2020	1760	10	17600
Jan 25,2020	440	9	3960
Total	3520		36080

b) Calculate ending inventory under LIFO

	Unit	Unit cost	Total Cost
Beginning inventory	1320	7	9240
January 5	2200	8	17600
Total	3520		26840

c) Calculate weighted average cost per unit

	Unit	Unit cost	Total Cost
Beginning inventory	1320	7	9240
January 5	2640	8	21120
January 25	2860	9	25740
February 16	1760	10	17600
Mar 26	1320	11	14520
Total	9900		88220

Weighted average cost per unit = 88220/9900 = 8.91

d) Ending inventory = 3520*8.91 = 31363